Target’s problems run deeper than the 130 stores in Canada, according Janney Capital Markets analyst David Strasser.
His firm is more concerned with shrinking profit margins in the U.S., which has 1,795 stores and where new chief executive officer Brian Cornell took charge effective today.
Cornell replaces former CEO Gregg Steinhafel.
“Our contention is the retail environment, led by online retailers and WMT (Walmart), has structurally changed industry margin dynamics and Mr. Cornell will need to readjust TGT’s (Target’s) margin expectations to adapt to this new world,” according to a research note from issued Monday by Strasser and his associates at Janney.
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